Title page for ETD etd-08312013-094009

Type of Document Master's Thesis
Author Newell, Jordan Andrew
Author's Email Address jnewel2@tigers.lsu.edu
URN etd-08312013-094009
Title Quality of Care: Analyzing the Relationship Between Hospital Quality Score and Total Hospital Costs
Degree Master of Science (M.S.)
Department Agricultural Economics & Agribusiness
Advisory Committee
Advisor Name Title
Keithly, Walter R Jr Committee Chair
Fannin, James Matthew Committee Member
Portier, Ralph Joseph Committee Member
  • Pneumonia
  • Rural
  • Healthcare
  • Quality
  • Hospital
Date of Defense 2013-08-08
Availability unrestricted
As healthcare costs and premiums have increased in the recent past, hospitals are forced to try to provide healthcare on tight budgets. In many cases, quality is often sacrificed in an effort to manage patient wait-times and costs. This research attempted to add to the existing body of knowledge of quality of care by defining a relationship between quality of care provided and total hospital costs. This study used the 2006 American Hospital Associationís Annual Survey Database and the 2006 Hospital Compare dataset to meet the data requirements for the study. A log-log, as well as a translog, cost function was used to estimate the relationship between quality of care provisioned for community acquired pneumonia and heart failure and total hospital costs. Regressors for the cost function included hospital outputs, inputs and wages as well as variables for patient-mix, case-mix, ownership status and medical school affiliation. Ultimately this study concluded that by increasing the quality of care score associated with community-acquired pneumonia by ten percent would decrease total hospital costs by 2.44 percent. However, several improvements were found that would improve the ability of the quality of care data and estimation methodologies to more comprehensively represent quality.
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